Stock Alert for Zoom Technologies Inc. (ZOOM)
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    Small-Cap Stock on Watch: Zoom Technologies Inc. (ZOOM)

    Small-Cap Stock on Watch: Zoom Technologies Inc. (ZOOM)

    Shares of Chinese hand set maker Zoom Technologies Inc. (NASDAQ: ZOOM) advanced almost 18% to close Wednesday’s session at $0.97, with over 1.25 million shares traded.  ZOOM is currently trading below its 50-day moving average of $1.72 and below its 200-day moving average $2.13. Market capitalization currently stands at 20.79 million and it has 22.31 million outstanding shares.

    ZOOM shares fell 1.1% in the last five days and 55.4% in the last month.  Year-to-date, the stock is down 73.1%

    Zoom Technologies is a holding company with subsidiaries that engage in the manufacturing, research and development, and sale of electronic and telecommunication products for the latest generation mobile phones, wireless communication circuitry and related software products. Its Jiangsu Leimone subsidiary owns a majority stake of TCB Digital, which offers highly customized and high quality Electronic Manufacturing Service (EMS) for Original Equipment Manufacturer (OEM) customers as well as its Own Brand Manufacturing (OBM) under the Zoom, Leimone and Longtel brand names.

    Zoom Technologies recently announced its Leimone brand 3G mobile phones have been approved by China Mobile for its TD-SCDMA product lineup expected for the first quarter of 2012.  The company said its “i99,” a new 3G model specially designed for China Mobile, is in its final phase of testing by the operator, and once approved, it will will be branded with China Mobile’s 3G Logo and will be available on China Mobile’s vast national retail network and also its Electronic Purchase Platform (EPP), and be sold bundled with China Mobile’s various service.

    “I am very excited that our Leimone brand TD-SCDMA mobile phones will soon enter China Mobile’s extensive sales network,” stated Leo Gu, chairman and CEO of Zoom Technologies.

    For the third quarter ended September 30, 2011, Zoom Technologies reported revenues of $50.75 million, down 29.7% compared to $72.16 million in the comparable quarter of 2010. The company attributed the decline to lower sales in both the OEM sector and its own branded mobile phones, resulting from credit tightening policies in China. During the period, the company sold 152,150 units of its Leimone brand phones of which 121,700 were 3G handsets, and its sold 51,104 units of its LongTel brand phones to India.

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